Created: April 9, 2021
Modified: December 14, 2022

Podcast Episode 195: Understanding Risk in Your Portfolio

What You’ll Learn:
Before you can determine an investment strategy, you have to understand your risk profile. How comfortable are you with volatility or would you prefer a more conservative approach? Unfortunately, many people just don’t realize how much risk they’re taking on inside their portfolio so that’s what we want to help you get a better grasp on today.

When you begin to think about investing, one of the first words that comes to mind is risk. With every decision you make, you have to weigh the amount of risk that comes along with the opportunity for growth.

On this episode of the Money Wisdom podcast, we’re talking all about risk and how someone’s risk profile applies to our client’s retirement planning. The reason we felt the need to take on this topic for the show is because we realize most people aren’t actually comfortable with the risk they’re taking in their portfolio once we break it down for them.

What we have also seen through the years is that well over half of our clients are risk-averse. They don’t want to see a downturn at all even though they realize it happens from time to time. Given the choice, they’d rather have a smaller return that carries much less risk. And that mindset is not something an advisor can change. Trying to convince them to take on more or less risk just doesn’t work. It’s about building a plan that lines up with their comfort level.

The other side of this discussion is at some point you just don’t need to take on much risk no matter what risk profile you possess. There comes a point in your planning process that it’s more about protecting what you’ve built and we work with our clients to accomplish that and ensure a successful retirement.

Our approach to risk involves three steps:

  1. Have some of your money in a safe place
  2. Look to generate a reasonable rate of return
  3. Keep it simple

As you’ll hear during the conversation, our risk analysis comes later in the financial plan because we want to know where you’re going before we figure out how you need to get there. If you’re ready to get a full assessment of your portfolio, get in touch with us and begin your complimentary Money Map review process.

Let’s get started with the show. You can listen to it by using the audio player above and click on the timestamps to skip to a specific topic of conversation.

0:46 – What guidance would you give Warren Buffet for his $100 billion?

2:37 – What percentage of clients are comfortable with risk? 

3:57 – Balancing a couple that sees risk differently 

5:50 – How often does a portfolio line up with risk tolerance?

8:38 – Reducing risk without reducing opportunities for growth  

10:36 – Risk analysis we provide

  • Sandy and Thomas C.
    Sandy & Thomas C. are clients of Johnson Brunetti and received no compensation for their statement.

    “We always felt our financial needs were in very capable hands. Alex Angst is great to work with. Our advisor always made us feel he had our best interests at heart and explained things so we could understand them.”

  • Lisa D.
    Lisa D. is a client of Johnson Brunetti and received no compensation for her statement.

    “Working with Johnson Brunetti has had a positive impact on my life by providing me with the knowledge, confidence, and peace of mind to move forward with my retirement plans. The process of getting to this point, through their guidance, has been informative and pleasurable.”

  • Ken D.
    Ken D. is a client of Johnson Brunetti and received no compensation for his statement.

    “I view your company as one that puts my interests first. I think that is very uncommon and very refreshing. “

  • Jeanne P.
    Jeanne P. is a client of Johnson Brunetti and received no compensation for her statement.

    “Matt does an awesome job! So easy to understand and he listens to our concerns and addresses them! happy I chose your firm!”

  • Anonymous
    This testimonial was provided by a client of Johnson Brunetti and received no compensation for their statement.

    “I have been pleased with the help and service I have received from the company. I have met several team members on Eric’s team and have found all of them very well prepared to meet with me when reviewing my portfolio. I always feel that I am an important customer and appreciate that very much. I hope the firm continues to focus on the customer and maintains its great service. I think you do a great job for someone like me!!!! I’m happy I chose your firm!”

Johnson Brunetti
Welcome to Our New Website!
Everything was designed with you in mind, making our retirement planning resources more easily accessible to you.
Check out your new resource center, where everything can be organized by article type or topic
Are you ready to speak with a financial advisor?
Johnson Brunetti

Investment Advisory Services offered through JB Capital, LLC.
Insurance Products offered through JN Financial, LLC.
Atlanta • Boston • Hartford | Tel: 800-208-7233

JB Capital LLC is a federally registered investment adviser under the Investment Advisers Act of 1940. Registration as an investment adviser does not imply any level of skill or training. Information presented is for educational purposes only and is not intended as an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies.

JB Capital's Form ADV | Disclaimer | Privacy Notice | Client Relationship Summary

*Information about our Affiliation with the UConn Huskies

Johnson Brunetti is a sponsor of WFSB Better Money, WCVB Better Money Boston, WSB-TV Better Money Atlanta, WTNH Money Wisdom, and WTIC Money Wisdom.